Some businesses pay creditors too fast, leaving them with insufficient funds to cover other bills, while others unnecessarily miss payments and damage relationships with suppliers. Whether a company has a high accounts payable turnover or a low one, the fact that the business is calculating this metric in the first place is a step in...Read More

Therefore, over the fiscal year, the company’s accounts payable turned over approximately 6.03 times during the year. A ratio below six indicates that a business is not generating enough revenue to pay its suppliers in an appropriate time frame. Bear in mind, that industries operate differently, and therefore they’ll have different overall AP turnover ratios....Read More